Adecoagro S.A. (NYSE:AGRO) Q1 2024 Earnings Conference Call May 17, 2024 11:00 AM ET
Company Participants
Vitoria Cabello - Investor Relations Officer
Mariano Bosch - Chief Executive Officer
Emilio Gnecco - Chief Financial Officer
Renato Junqueira Pereira - Vice President, Sugar, Ethanol and Energy
Conference Call Participants
Henrique Brustolin - BTG
Isabella Simonato - Bank of America
Larissa Perez - Itau BBA
Julia Rizzo - Morgan Stanley
Operator
Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Adecoagro’s First Quarter 2024 Results Conference Call.
Today with us, we have Mr. Mariano Bosch, CEO; Mr. Emilio Gnecco, CFO; Mr. Renato Junqueira Pereira, Sugar, Ethanol and Energy VP; and Mrs. Vitoria Cabello, Investor Relations Officer.
We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company's presentation. After the company's remarks are completed, there will be a question-and-answer section. At this time, further instructions will be given.
Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Adecoagro's management and on information currently available to the company. They involve risks, uncertainties, and assumptions, because they relate to future events and therefore, depend on circumstances that may or may not occur in the future.
Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Adecoagro and could cause results to differ materially from those expressed in such forward-looking statements.
Now, I'll turn the conference over to Mr. Mariano Bosch, CEO. Mr. Bosch, you may begin your conference.
Mariano Bosch
Good morning, and thank you for joining the Adecoagro’s 2024 first quarter results conference.
Consolidated adjusted EBITDA during the quarter reached $90 million, in line with our previous year. Our sugar, ethanol, and energy business reported a crashing record figure for the first quarter ever since we set foot in Brazil. This was possible thanks to all the investments done in expansion planting to have good cane availability. In fact, we were one of the only players harvesting and producing sugar we continued to command an attractive premium over ethanol during the quarter.
Having in place a continuous harvest model enabled us to crush cane year around and to constantly supply new products to the market, especially during Brazil's inter-harvest period, without mentioning that the higher the milling, the lower our cost of production. Despite this outstanding operational performance, the decrease in the forward curve of sugar prices was the main driver towards the year-over-year decline in adjusted EBITDA degeneration for this particular segment.